Erin Swenlin's Blog

Price is consolidating sideways and unfortunately it results in our indicators having tremors. With jittery daily indicator readings, we have to look at the trend and all of the indicators are trending lower, giving the impression there isn't much steam building to power a rally.

The market continued to amble along sideways, not making any significant move, likely in anticipation of the Fed meeting minutes and economic reports, particularly Q2 GDP, that will be released tomorrow.

We can't read too much into this week's trading action, but in the short term the market looks weak and short-term indicators have topped and are overbought. No point in making any serious investment decisions until trading gets back to 'normal' next week.

The market is short-term bullish given that ultra-short-term indicators just hit climactic readings as price is starting to come out of a bottom, and there was the execution of the bullish double-bottom pattern. The apple cart could be upset if the Fed announces tapering or ending its bond buying program tomorrow after its meeting.

Price took off on the open, sitting above a 1% gain at one point during the morning. The market deflated, but still finished the day up .6%.

The market opened up and rose higher to close up 1.4% by day's end. The market has recouped over half of yesterday's losses.

The big news today is that the DJIA closed on an all-time high, moving past the high from October 2007. The SPX, like the DJIA, opened higher and then spent the rest of the day digesting the move.

The market continued to defy gravity and overbought conditions, closing on a new 5-year high. I didn't find any significant headlines to pin today's rally on; it seems the bull is just indefatigable and at this point, big news isn't needed for the market to continue higher.

The market is short-term overbought and price has topped. Intermediate-term is looking more bearish than before due to a combination of problems that include indicator tops below EMAs and negative divergences. This leaves the market vulnerable...

Ultra-short-term we see a bullish ascending triangle. Support at the 1400 level is holding steady. Short-term indicators are no longer overbought and will better absorb a rally. The tide is turning positive with the signal table beginning to flip to BUY signals.